Wells Fargo Raises Oil Price Targets Citing Ongoing Supply Risks
Wells Fargo Investment Institute raised its crude oil price targets for 2027 on Tuesday, citing ongoing supply disruptions and inventory rebuilding needs. The institute increased its year-end 2027 target for West Texas Intermediate crude to $75-$85 per barrel from $70-$80. Brent crude’s target moved to $80-$90 per barrel from $75-$85. Wells Fargo analysts said they ...
Wells Fargo Investment Institute has increased its crude oil price forecasts for 2027, pointing to ongoing supply concerns and the need to rebuild inventories. The firm has raised its year-end 2027 target for West Texas Intermediate crude to $75-$85 per barrel, up from $70-$80. The Brent crude target has risen to $80-$90 per barrel, from $75-$85.
Analysts anticipate that supply disruptions will gradually lessen throughout 2027, but will still require a premium per barrel due to risks of ongoing closures. They also anticipate that countries will start to rebuild depleted energy reserves from multi-year lows as supply conditions improve. The analysts predict prices will ease from recent peaks but will stay above previous targets through 2027.
They point to persistent geopolitical risks, rising business technology spending, and inflation pressures as factors that may keep prices high. Wells Fargo expects the Federal Reserve to respond to these inflation pressures with further interest rate hikes, which could slow global economic growth. These rising borrowing costs, diminished purchasing power, high fuel expenses, and reduced business technology spending are expected to further slow U.S. economic growth.
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